KUALA LUMPUR (March 19): Solarvest Holdings Bhd’s (KL:SLVEST) stock edged up on Wednesday, bucking broader market decline, as investors cheer its biggest job win to-date and analysts see more contract flows in coming months.

The company would be the “prime beneficiary” of the fifth round of the large-scale solar programme, or LSS5, which begins this year and other rounds over the next 24 months, Hong Leong Investment Bank said in a note on Wednesday and kept the stock on ‘buy’ call.

The projects are expected to generate engineering, procurement, construction, and commissioning (EPCC) contracts worth up to RM18 billion, which could support Solarvest’s orderbook growth cycle, the house said.

Solarvest rose one sen or 0.6% to RM1.66 on Wednesday. Solarvest announced that it has bagged its largest single solar engineering, procurement, construction and commissioning (EPCC) contract worth over RM400 million under Tenaga Nasional Bhd’s (KL:TENAGA) 500-megawatt LSS5 project in Kedah.

The company’s unbilled jobs on hand now totalled RM1.3 billion with the latest contract.

Solarvest's share price has been swinging between gains and losses this year, and was down 2% year-to-date. Analysts, however, are largely bullish on the stock and see large upside for its share price ahead, betting on the country’s push for renewable energy.  

There are now nine ‘buy’ and one ‘hold’ without any ‘sell’ calls, according to analysts tracked by Bloomberg. The average target price is RM2.18, suggesting potential return of up to 31% over the next 12 months from current prices.

LSS5 would have EPCC contracts worth an estimated RM5 billion, of which Solarvest stands “a strong chance” to get about 30% of the total, according to Kenanga Investment Bank. That translates to RM1.5 billion jobs for the company.

In the immediate term, there is “a strong influx of job opportunities” driven by the LSS5 rollout that must be completed by the end of 2026 and an additional 500-megawatt quota under Malaysia’s net energy metering initiative, the research house said.

Overall, “we believe Solarvest is well positioned to benefit from government initiatives, leverage its unique in-house solar financing, and capitalise on its status as Malaysia’s largest solar EPCC player”, Apex Securities added.

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